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CONNECTING NORTH CAROLINA - State Broadband Plan - Broadband Infrastructure ...
CONNECTING
NORTH CAROLINA
State Broadband Plan
CONNECTING NORTH CAROLINA - State Broadband Plan - Broadband Infrastructure ...
CONNECTING NORTH CAROLINA
     State Broadband Plan

        Broadband Infrastructure Office
   www.ncbroadband.gov | broadband@nc.gov
        919 754 6690 | @BroadbandIO
CONNECTING NORTH CAROLINA - State Broadband Plan - Broadband Infrastructure ...
Contents
   I. Executive Summary…………………………………………………………………………………………………1
  II. Introduction……………………………………………………………………………………………………………5
 III. Broadband Availability and Adoption…………………………………………………………………7
        a. Availability……………………………………………………………………………………………………………………………………………7
         i.   Overview…………………………………………………………………………………………………………………………………………………………………………………………………7
         ii. Recommendations…………………………………………………………………………………………………………………………………………………………………………………12

        b. Adoption……………………………………………………………………………………………………………………………………………15
         i.   Overview………………………………………………………………………………………………………………………………………………………………………………………………15
         ii. Recommendations…………………………………………………………………………………………………………………………………………………………………………………18

 IV. Specific Issue Areas………………………………………………………………………………………………21
        a. K-12 Homework Gap…………………………………………………………………………………………………………………………21
         i.   Overview………………………………………………………………………………………………………………………………………………………………………………………………21
         ii. Recommendations…………………………………………………………………………………………………………………………………………………………………………………22

        b. Economic Development……………………………………………………………………………………………………………………26
         i.   Small Business Adoption and Use……………………………………………………………………………………………………………………………………………………27
              1.   Overview…………………………………………………………………………………………………………………………………………………………………………………………27
         ii. Workforce Development………………………………………………………………………………………………………………………………………………………………………29
              1.   Overview…………………………………………………………………………………………………………………………………………………………………………………………29
         iii. Recommendations…………………………………………………………………………………………………………………………………………………………………………………30

        c. Telehealth…………………………………………………………………………………………………………………………………………31
         i.   Overview…………………………………………………………………………………………………………………………………………………………………………………………………31
         ii. Recommendations…………………………………………………………………………………………………………………………………………………………………………………33

        d. Public Safety……………………………………………………………………………………………………………………………………34
         i.   Overview…………………………………………………………………………………………………………………………………………………………………………………………………34
         ii. Recommendations…………………………………………………………………………………………………………………………………………………………………………………36

  V.    Implementation……………………………………………………………………………………………………37
 VI.    Conclusion……………………………………………………………………………………………………………40
 VII.    Endnotes…………………………………………………………………………………………………………………41
VIII.   Glossary and Defenitions……………………………………………………………………………………44
 IX.    Appendices……………………………………………………………………………………………………………46
  X.    Acknowledgements………………………………………………………………………………………………61
 XI.    About BIO………………………………………………………………………………………………………………62
CONNECTING NORTH CAROLINA - State Broadband Plan - Broadband Infrastructure ...
Figures
Figure 1. Broadband Deployment Rate Compared to Other States………………………………………………………………………2

Figure 2. Broadband Adoption Rate Compared to Other States…………………………………………………………………………3

Figure 3. Broadband Deployment and Adoption Initiative Survey Results…………………………………………………………6

Figure 4. Percentage of Population without Broadband Access by County…………………………………………………………8

Figure 5. Broadband Deployment in Southeast States Compared to NC……………………………………………………………9

Figure 6. Fiber to the Home Progression Map, 2014-2015……………………………………………………………………………………9

Figure 7. BIO’s Broadband Availability Index at 25 Mbps Download Speeds……………………………………………………10

Figure 8. Broadband Availability at 25 Mbps Download Speeds…………………………………………………………………………10

Figure 9. County-Level Adoption Rates…………………………………………………………………………………………………………………16

Figure 10. North Carolina Broadband Adoption Rates by Income, 1999-2014……………………………………………………16

Figure 11. Primary Barriers to Broadband Adoption Across the Nation………………………………………………………………17

Figure 12. Primary Reasons for Non-Adoption in North Carolina, 2011-2013………………………………………………………18

Figure 13. Broadband Adoption Decreases, 2013-2015…………………………………………………………………………………………21

Figure 14. Estimated Homework Gap in North Carolina…………………………………………………………………………………………22

Figure 15. Estimated Percentage of K-12 Students with Home Access at 3 Mbps………………………………………………23

Figure 16. Broadband’s Relationship with GDP……………………………………………………………………………………………………26

Figure 17. Broadband’s Impact on Location Selection and Retention…………………………………………………………………27

Figure 18. Percent of Businesses Satisfied with their Type of Broadband Connection………………………………………28

Figure 19. Hiring Difficulties for North Carolina Employers in 2015……………………………………………………………………30

Figure 20. FirstNet NC Users……………………………………………………………………………………………………………………………………34

Figure 21. Broadband’s Public Safety Users…………………………………………………………………………………………………………35

Figure 22. Broadband Planning Process…………………………………………………………………………………………………………………39
CONNECTING NORTH CAROLINA - State Broadband Plan - Broadband Infrastructure ...
EXECUTIVE
SUMMARY
CONNECTING NORTH CAROLINA - State Broadband Plan - Broadband Infrastructure ...
High-speed internet may be the most significant innovation               Time for a Plan
 of the late 20th century. It’s benefits—from creating jobs to
                                                                          This plan answers the charge by the North Carolina
 transforming education—are profound.
                                                                          General Assembly (NCGA) [EN: Session Law 2015-241] to
 North Carolina’s broadband internet infrastructure is robust.            assess the current status of broadband availability and use
 The state leads the nation in developing, leveraging, and                across the state, analyze the best methods and means to
 utilizing broadband-enabled technologies to help children                “establish universal access,” and offer strategies to achieve
 learn and stimulate economic development. The existing                   universal access.
 infrastructure positions the state to create a 21st century
                                                                          A thorough analysis of current deployment, access, and
 prepared workforce, increase small businesses’ efficiency
                                                                          adoption was completed using available data from state
 and effectiveness, and enable new healthcare technologies
                                                                          and federal resources and feedback from community
 and service models. Faster, more reliable connectivity
                                                                          leaders and stakeholders. In keeping with the statutory
 allows first responders and law enforcement to access data
                                                                          requirement, the plan’s recommendations are informed
 that could save lives and increase safety.
                                                                          by subject matter experts, providers, state agencies, local
 However, broadband’s benefits are not evenly dispersed                   leaders, and stakeholders representing various populations
 and a digital divide, or “a gulf between those who have                  and industries (Appendices B and C).
 ready access to the internet and computers,”i and those that
                                                                          The majority of the recommendations are state budget-
 don’t, is growing. Many communities, typically in sparsely
                                                                          neutral. The few that require funding identify a funding
 populated or economically-distressed areas lack access to
                                                                          source, typically an established private, federal, or state loan
 infrastructure or affordable service. Additionally, broadband
                                                                          or grant fund.
 adoption—the proportion of citizens subscribing to
 internet service—is low in NC given the rate of broadband
 availability in the state and contributes to the widening                Current Status
 digital divide.
                                                                          These recommendations and the implementation strategies
 This divide, new technologies, user demand,ii and                        build upon the current state of broadband deployment and
 greater reliance on internet access, necessitates ongoing                adoption. NC’s broadband deployment rate ranks slightly
 infrastructure upgrades within our state.                                above the U.S average (93 percent) and is the highest
                                                                          deployment rate among southeastern states.iii Providers
                                                                          continue to invest in expanding infrastructure in NC as
                                                                          evidenced by NC’s seven percent increase in deployment
                                                                          rates between 2013 and 2014.

                            FIGURE 1. BROADBAND DEPLOYMENT RATE COMPARED TO OTHER STATES

 Source: FCC 2016 Broadband Progress Report, data current as of 12/3/14

 The counties with low deployment rates are areas with low population density. Only one percent of the households
 without access are in urban areas.

 However, North Carolina has one of the lowest adoption rates in the country. Even among households with access to
 broadband (defined at 25 Megabits per second and 3 Megabits per second upload) only 16 percent are subscribing.
 Adoption is particularly low among low-income households. In 2013 only 47% of NC households with annual incomes
 under $15,000 adopted broadband.iv

2 | North Carolina’s Broadband Plan
CONNECTING NORTH CAROLINA - State Broadband Plan - Broadband Infrastructure ...
FIGURE 2: BROADBAND ADOPTION RATE COMPARED TO OTHER STATES*

 *out of 45 reporting states. Source: FCC 2016 Broadband Progress Report, Data Current as of 12/14

 Because adoption is a key indicator of use, it is inextricably                 State Broadband Plan
 linked to universal access. Usage enhances consumer
                                                                                State and local government leaders can impact the
 demand, which drives deployment and investment, which
                                                                                broadband ecosystem by encouraging competition and
 drives further innovation and economic development.
                                                                                empowering communities to act. By updating laws and
 Adoption rates directly affect broadband’s social benefits,
                                                                                policies and designing policies to incentivize adoption in
 namely a better educated and informed citizenry.
                                                                                sectors the government heavily influences, lawmakers can
 There are five main barriers to broadband adoption,                            foster both the supply-side and the demand-side.
 and they’re particularly pronounced among low-income                           The plan recognizes:
 households. The primary barriers are: the cost or
 affordability of service; the real or perceived costs of a                        ==    Increased competition drives innovation,
                                                                                         affordability, and the deployment of future-proof
 computer; laptop or other devices; digital literacy; and the
 internet’s perceived relevancy in a person’s daily life.                                infrastructure.

 Within the broad topics of availability and adoption,                             ==    In areas where competition is lacking, empowered
                                                                                         and engaged communities form more equitable
 the plan addresses specific issue areas and industries
 identified as facing significant and imminent challenges                                partnerships with private sector internet service
 and opportunities.                                                                      providers (ISPs). Communities can lower
                                                                                         deployment costs by better leveraging existing
 The issue areas addressed in the plan include: K-12 education,                          infrastructure, easing access to right-of-ways and
 economic development, telehealth, and public safety.                                    poles to facilitate path creation, and investments in
                                                                                         next-generation infrastructure.
 As the state moves to digital learning and enhances
 internet connectivity within schools, a large number of
 children cannot complete digital homework assignments.
                                                                                   ==    Community-based adoption and utilization
                                                                                         programs help drive demand.
 This phenomenon-called the ‘homework gap’-is a
 significant concern among educators, community leaders,                           ==    Federal, state and private loans and grants offer
                                                                                         untapped funding for infrastructure, planning, and
 and parents and must be addressed if our children are to
                                                                                         adoption initiatives, including subsidies for low-
 be prepared for the digital economy.
                                                                                         income households.
 The state must better leverage broadband infrastructure
 to enhance economic development in rural areas,                                GOALS AND OBJECTIVES
 workforce development, and small business adoption.                            The plan's overarching goal is for every North Carolinian
 Using broadband technologies, the state can develop                            to have affordable access to broadband service—wireline
 opportunities in the healthcare sector to reach a greater                      or wireless—if they so choose, by June 2021. The following
 number of people and reduce costs. Finally, digital                            objectives support these goals:
 infrastructure must be large and secure enough to
 ensure the effective execution of public safety agencies’
 missions—to protect North Carolinians.
                                                                                   ==    Increase the percentage of households with access
                                                                                         to fiber optic cable to 50 percent by June 2021

                                                                                   ==    Increase the percentage of households with access
                                                                                         to broadband to 100 percent by June 2021

                                                                                   ==    Increase household adoption rates to over 60
                                                                                         percent by June 2021v

3 | North Carolina’s Broadband Plan
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==   Affordable access to the internet outside of school
         for 100 percent of K-12 students by June 2021
                                                                    ==   Foster creation of digital literacy tools by and for
                                                                         local communities

    ==   Ensure high-speed internet access is available at all
         libraries by 2020 (currently just over 50 percent)
                                                                    ==   Support and expand device delivery programs and
                                                                         the organizations who conduct them

    ==   A state-wide model for the development and
         deployment of local, community-based digital
                                                                 3. Close the ‘homework gap’ for K-12 students without
                                                                    access at home:
         literacy programs

 SUMMARY OF RECOMMENDATIONS
                                                                    ==   Advocate for leveraging school's digital
                                                                         infrastructure for use by the community as a whole
 The plan’s recommendations specifically support the
 achievement of these goals. While not interdependent,
                                                                    ==   Leverage K-12 education system to reach children
                                                                         and their parents
 they are interrelated and build on one another.

 The final recommendations were informed by subject
                                                                    ==   Encourage creation and/or expansion of tech-based
                                                                         curriculum in K-12 schools
 matter experts, providers, and stakeholders. While
 compiling research and recommendations from                        ==   Expand device delivery to low-income households,
                                                                         especially those with K-12 students
 stakeholders, two consistent themes emerged: 1)
 communities that plan and have ‘skin in the game’ impact
 deployment and affect adoption, and 2) where competition
                                                                    ==   Provide low-cost mobile service solutions

 is lacking, communities will need to partner with private-      4. Facilitate integration of broadband into economic
 sector entities and ISPs to expand affordable options.             development strategies:
 With these themes in mind, the recommendations offer
 ways for state and local leaders to foster an ecosystem
                                                                    ==   Include broadband as an indicator in the “Certified
                                                                         Work Ready Community” program
 that supports the expansion of access and increased
 adoption at the community and state level. They include:           ==   Facilitate a state-supported campaign to brand the
                                                                         state (internally and externally) as a digital leader
 1. Incentivize investment in next generation, future-proof
    infrastructure and reduce barriers to deployment.
                                                                    ==   Leverage existing state agency workforce
                                                                         development tools

    ==   Ease access to state and municipality-owned right-
         of-ways, poles and vertical assets
                                                                    ==   Encourage communities to include broadband in
                                                                         their economic development plans

    ==   Create “Dig Once” and “One Touch” policies to
         reduce the number of times the rights of ways
                                                                 5. Recognize and leverage the influence telehealth
                                                                    technologies’ have on household broadband adoption
         (ROWs) are disrupted and allow the ROW owners              and use:
         to better manage encroachments and reduce
         permitting costs                                           ==   Improve education and marketing for federal
                                                                         “Health Care Connect Fund” (HCF)
    ==   Leverage existing federal and state loan programs
         for local governments                                      ==   Create best practices for healthcare providers

    ==   Create grant programs to support community-                ==   Require broadband be built into new healthcare
                                                                         facilities
         based incentives for providers and, where
         necessary, community-based infrastructure
         investment
                                                                    ==   Providers market low-cost options for broadband at
                                                                         their homes
    ==   Ensure building codes include broadband
                                                                    ==   Implement remote monitoring pilots
    ==   Encourage and leverage ongoing research and
         development of next-generation technologies to
                                                                    ==   Provide medical reimbursements for broadband
                                                                         service
         reach non-adopters and unserved households
                                                                 6. Enhance public safety and first responder connectivity,
    ==   Broadband Infrastructure Office (BIO) provides
         ongoing technical assistance to local governments
                                                                    by continuing the pursuit of a state-wide, interoperable
                                                                    data network and the Next-Generation 911 initiative.

 2. Create community-based adoption and utilization
    programs and initiatives:

    ==   Educate low-income households and their
         community leaders on affordable broadband
         subsidies and programs

    ==   State Librarian/BIO should continue to lead effort
         to ensure high-speed, next-generation connectivity
         to all NC Libraries

4 | North Carolina’s Broadband Plan
CONNECTING NORTH CAROLINA - State Broadband Plan - Broadband Infrastructure ...
Implementation
 The best laid plans remain mere ideas unless they’re
 adopted and thoughtfully implemented. To achieve the
 goal of ensuring every North Carolinian has affordable
 access to broadband service, if they choose, by June
 2021, collaborations and shared responsibility for
 implementation is required. Building this plan was a
 collective effort. The responsibility for implementing the
 plan will also require a team-based approach.

 As the plan’s author and resource-hub for broadband in
 the state, the Broadband Infrastructure Office (BIO) within
 the Department of Information Technology will monitor
 implementation and report on the plan’s progress.

 Successful implementation also relies upon strong leadership
 by those who directly impact the broadband ecosystem: the
 executive branch, the General Assembly, state agencies, non-
 profits, and broadband service providers.

 BIO’s Technical Assistance team will continue to work with
 NC’s counties and communities using a proven process
 to expand and enhance access. Recognizing that a one-
 size-fits-all approach does not work, BIO will rely heavily
 upon county and municipal governments, the Councils of
 Governments, and community leaders to partner with BIO
 to tailor solutions for their communities.

 Together, we can collectively ensure North Carolina
 benefits from all that broadband has to offer.

5 | North Carolina’s Broadband Plan
CONNECTING NORTH CAROLINA - State Broadband Plan - Broadband Infrastructure ...
INTRODUCTION
The list of technologies that have universally impacted the
 world’s people and economies is short. Few have superseded         STATE BROADBAND PLAN
 borders and overcome typical barriers to widespread change,
 like differing nationalities, languages, beliefs, and values:      Session Law 2015-241, Page 27, Section 7.23.(A).
 running water, electricity, the steam engine, motorized            The State CIO shall develop a State broadband
 vehicles, mechanization, computers. And now the internet.          plan that includes: (1) Information regarding
 The internet intersects with and impacts nearly every              the availability and functionality of broadband
 facet of the modern American’s life. Through it, citizens          throughout the State and an evaluation of the current
 can buy and sell goods and services, engage with their             deployment of broadband service. (2) A strategy to
 governments, complete homework, earn degrees and                   support the affordability of broadband service as well
 certifications, receive healthcare services, work from             as maximum utilization of broadband infrastructure,
 home, run a business, connect with friends and family,             including potential partnerships and sources of
 watch movies, stream their favorite television show, catch         funding to support the effort. (3) Analysis of means,
 up on current events from around the world, or visit art           methods, and best practices to establish universal
 museums—all without leaving their home.                            broadband access across the State. In developing the
                                                                    State broadband plan, the State CIO shall coordinate
 In more profound terms, the internet has closed an                 with other State agencies in order to maximize the
 information gap for all people. Today, using a smartphone          effectiveness and efficiency of available resources.
 or tablet, any person can access the world’s most
 significant research and data. It has leveled the economic,
 social and cultural playing fields. Just within the last
 decade and a half it has created a trillion-dollar industry     Background and Overview
 and multi-billion dollar companies that have altered the
 trajectory of entire economies.                                 All aspects of the plan were informed by subject-matter
                                                                 experts and stakeholders from across the state. From the
 But the value citizens reap from broadband is directly tied     identification of the challenges to the specific solutions found
 to whether they have access to it, can afford to purchase       in this plan, BIO engaged stakeholders throughout the entire
 a subscription, see a need for adopting the technology,         process. As such, BIO is confident the recommendations
 or have the existing capabilities to use the technology.        put forth in this plan are the best solutions for expanding
 Without reliable and consistent access to next generation       broadband availability, adoption, and use.
 broadband speeds — the situation for over 738,306 NC
 households — the utility of the internet drops significantly    To determine which challenges the plan should address, BIO
 for both the individual and their community.                    first gathered data and reviewed research and academic
                                                                 literature on what challenges are the most prevalent
 And when people do not adopt high-speed broadband               barriers to improving broadband availability and adoption.
 because they cannot afford a subscription, do not see its
 relevance to their daily lives, or are not digitally literate   Next, BIO surveyed over 3,500 community leaders
 they lose broadband’s potential positive impacts.               from across the state. More than 500 community
                                                                 leaders—including city and county managers, IT
 North Carolina’s leaders are committed to ensuring all          specialists, economic developers, and local elected
 North Carolinians can access this life-changing technology      officials—responded to the survey. The quantitative and
 and that no North Carolinian is left on the wrong side of       qualitative results assisted in identifying which challenges
 the “digital divide.” To that end, Governor Pat McCrory         stakeholders viewed as the most urgent and which factors
 and the State Chief Information Officer (SCIO) established      should be addressed to resolve those challenges (See
 the Broadband Infrastructure Office (BIO) in 2015 as a          Appendix A for the full survey results).
 statewide resource for broadband access, first responder
 communications, economic development, and student
 connectivity initiatives.

 BIO aligns NC Broadband, the statewide effort to expand
 high-speed internet access, with the FirstNet public safety
 initiative for improved resource sharing across state
 agencies. The centralized and streamlined office provides
 the opportunity to work across agencies and with willing
 communities to identify program and infrastructure
 development needs across NC.

 This plan, directed by the North Carolina General Assembly
 (NCGA) in Session Law 2015-241, includes an assessment
 of the current status of broadband availability, adoption
 and use in NC. It considers the infrastructure needs
 to meet future economic, government, and individual
 demands. It then provides recommendations for how
 best to address the challenges the state faces enhancing
 broadband’s access and impact.vi

5 | North Carolina’s Broadband Plan
FIGURE 3. BROADBAND DEPLOYMENT AND ADOPTION INITIATIVE SURVEY RESULTS

 BBResearch = Conducting research on broadband in NC                 CitizenAdopt = Increasing citizens’ broadband adoption and use
 SBApp = Small businesses’ ability to use we-based applications      K-12Access = Home broadband access for K-12 Students
 SBAdopt = Small businesses’ adoption/use of broadband internet      ExpandAccess = Expand broadband access
 AccessPolicy = Statewide policies that enhance broadband access

 Respondents rated the following issues as the most important:     During this data-gathering process, two consistent
                                                                   themes emerged:
     ==   Expanding broadband access, particularly for K-12
          students;                                                1. Communities that plan and have ‘skin in the game’
                                                                      impact deployment and affect adoption, and
     ==   Increasing adoption and digital literacy for all
          citizens and businesses; and                             2. Where competition is lacking, communities will need to
                                                                      partner with private-sector entities and ISPs to expand
     ==   Developing statewide policies that enhance access.
                                                                      affordable options. The plan explores these themes and
 With these priorities in mind, BIO determined the plan               others that emerged from the data-gathering process.
 should address broadband’s role in supporting K-12
                                                                   The plan begins with an overview of broadband availability
 education, increasing small business’s efficiency and
                                                                   and adoption which includes definitions, data and a brief
 effectiveness, ensuring NC’s workforce is equipped with
                                                                   history of broadband expansion and adoption in NC. Next,
 the skills needed to excel in the 21st century, provide the
                                                                   it addresses the challenges and identifies opportunities
 opportunity for telehealth to increase its reach to unserved
                                                                   for increasing broadband availability and adoption. The
 citizens, and support public safety activities.
                                                                   plan then focuses on broadband’s intersection with the
 To identify potential solutions, BIO hosted 10 brainstorming      K-12 schools and their populations’ households, economic
 sessions with subject-matter experts in each subject area the     development—specifically small business adoption and use
 plan addresses (see Appendix B for a full list of the sessions    and workforce development, telehealth, and public safety.
 and participants). At the sessions, the participants provided     The plan concludes with suggestions for implementation.
 recommendations, some of which were then developed
                                                                   Designed by and for the many stakeholders in the state
 more fully by the stakeholders at the meeting. In addition,
                                                                   and all North Carolinians, this plan ensures NC’s children,
 BIO solicited recommendations from individual stakeholders
                                                                   workforce, businesses, healthcare providers, and public
 and broadband experts through individual discussions
                                                                   safety organizations are equipped with the broadband
 (See Appendix C for a full list of the individual stakeholder
                                                                   infrastructure needed to succeed in the 21st century.
 meetings). After the meetings, BIO compiled and aggregated
 the recommendations. The recommendations found in this
 report are a result of this engagement.

6 | North Carolina’s Broadband Plan
BROADBAND
 AVAILABILITY
AND ADOPTION
Broadband Availability                                          in either the upstream or downstream direction.”ix In
                                                                 January 2015, the Federal Communication Commission
                                                                 (FCC) updated its recommended “availability” target
                                                                 speed threshold to 25 Mbps (download)/3Mbps (upload)
    BROADBAND AVAILABILITY STATISTICS TO KNOW
                                                                 from the previous recommended benchmark 4 Mbps
       ==   NC ranks 9th in the nation in broadband
            deployment
                                                                 (download)/1 Mbps (upload).x

                                                                 In 2010, the FCC noted in the National Broadband Plan
       ==   An estimated 93 percent of NC households
            have access to broadband
                                                                 that a universal target threshold of 4Mbps/1Mbps is
                                                                 “comparable to what the typical broadband subscriber
                                                                 receives today.”xi Yet merely five years later it “conclude[d]
       ==   52 of NC's 100 counties have a deployment
            rate equal to or greater than the US average
                                                                 that 25 Mbps/3 Mbps continues to provide consumers with
                                                                 the capacity necessary to use ‘advanced’ services that
            (90 percent)                                         ‘enable users to originate and receive high-quality voice,
       ==   89 percent of NC households without access
            live in sparsely populated areas
                                                                 data, graphics, and video telecommunications.’”xii

                                                                 While there has been plenty of debate surrounding the
                                                                 speed thresholds used to define broadband and the
                                                                 universal availability targets, this plan will use the FCC’s
                                                                 target speed threshold as a reference point.xiii It is the
 Broadband’s benefits to communities and individuals             benchmark used by the FCC and other federal government
 are well-documented and researched, but before those            agencies when comparing NC to the nation and to
 benefits can be realized, the infrastructure to deliver high-   individual states.
 speed Internet access must exist.
                                                                 The target also sets a goal or objective toward which the
 Broadband availability, sometimes referred to as deployment,    state should strive. Data trends suggest that the need and
 has historically been measured in a variety of ways.            demand for faster broadband speeds are growing, and will
 Most commonly, availability represents the ratio of the         continue to rapidly grow.
 population with access to broadband at the speed data is        For example, in August 2000, 41.6 percent of households
 transmitted or bandwidth capacity, measured in bits per         had adopted dial-up connections (at either 28.8 kbps
 second.vii Also referred to as deployment, it measures the      or 56 kbps), but only 4.4 percent of households had a
 basic “supply” level of broadband.                              home broadband connection (then considered 200 kbps).
 Access can also be measured by technology types.                By 2010, dial-up subscribers declined to 2.8 percent of
 Common technologies and infrastructure used include             households, whereas 68.2 percent of households were
 fiber optic cable, digital subscriber line (DSL)(copper),       subscribed to broadband service.xiv From 2001 to 2014,
 cable modem (coaxial), satellite, fixed wireless, and mobile    US households with internet access increased from 50.6
 wireless. NC has all technology types.                          percent to 75.8 percent.xv

 At a bird’s eye view, the most recent deployment                According to the Cisco Visual Networking Index: Forecast
 data show that much of the state has access to basic            and Methodology, 2014–2019 “[g]lobal Internet Protocol (IP)
 broadband. However, when looking at more granular               traffic has increased more than fivefold in the past 5 years,
 data, pockets of unserved areas in both rural and urban         and will increase nearly threefold over the next five years.
 locations exist. Sparsely populated areas generally lack a      Overall, IP traffic will grow at a compound annual growth rate
 traditional business case for private sector providers to       (CAGR) of 23 percent from 2014 to 2019. Broadband speeds
 serve them, and as the last unserved areas in the state,        will double by 2019. By 2019, global fixed broadband speeds
 they are likely the hardest and most expensive areas to         will reach 43 Mbps, up from 20 Mbps in 2014.”xvi
 serve. In urban areas, a lack of demand and affordability
 limit deployment.                                               Technology Types
 This section presents the current status of availability        Various technology types can transmit data at the FCC
 throughout the state, identifies factors limiting deployment    target speed threshold.
 in certain areas and technology types, and proposes
 recommendations for overcoming those challenges.                Much of the state’s broadband infrastructure was deployed
                                                                 to expand telephone and TV cable services alone. At
                                                                 the time, using this infrastructure to deliver high-speed
 Broadband Defined                                               internet access was not contemplated. Much of this
 Since its inception, how broadband is defined and how           infrastructure was retro-fitted for internet connectivity.
 the federal, state and local governments have regulated         Technological advances continue to allow DSL and coaxial
 its expansion has changed over time. It also varies from        cable to increase bandwidth capacity.
 state to state. The United States Code defines broadband        Over the past decade, several telecommunications and
 without reference to a speed threshold or specific              cable companies began deploying fiber-optic cable to
 technology.viii NC’s General Statutes define broadband          the home or premises (FTTP). Most have already built-
 service, in part, as “a high-speed access capability to         out their middle-mile networks using fiber. Considered
 transmit at a rate of not less than 200 kilobits per second     “future-proof,” fiber transmits data using light along fibers

7 | North Carolina’s Broadband Plan
no bigger in diameter than a human hair at hundreds or                      and central parts of the state use fixed wireless options for
 thousands of Mbps (1,000 kbps). It has few limitations in                   last mile servicexviii through providers such as SkyRunner,
 transmitting large amounts of data at the speed of light.                   SkyTec, and SkyFi. Less than 50 percent of the state has
                                                                             access to a fixed wireless service (see Appendix D).
 NC’s larger providers continue to make upgrades to
 their networks. AT&T, Time Warner Cable, Charter Cable,                     The major national wireless companies including Verizon,
 Frontier, and CenturyLink together provide access to                        AT&T, Sprint, US Cellular, T-Mobile, and others provide
 25 Mbps download to a majority of households in the                         wireless service in NC. Data speeds and caps vary,
 state over copper or coaxial cables. Technologies such as                   but mobile wireless is capable of delivering speeds
 DOCSIS 3 have enabled cable companies to increase data                      comparable to DSL and cable modem. The FCC estimates
 speeds over DSL to 50-105 Mbps.xvii Fiber-to-the-node                       that mobile wireless covers approximately 98 percent of
 (FTTN) or neighborhood increases speeds to premises or                      the state’s households.xix
 homes connected by cable.
                                                                             Satellite is another form of wireless service used most
 AT&T, the telephone cooperatives, regional providers                        often in remote areas where wireline options are
 such as RiverStreet, Country Cable, NorthState, Balsam                      unavailable or unaffordable. Download and upload speeds
 West, Broadplex, GoogleFiber and municipal providers                        are typically slower than DSL or cable modem and can
 like Greenlight (Wilson) and Fibrant (Salisbury) have built                 reach 500 kbps depending on the line of sight to the
 or have announced plans to build FTTP networks. These                       satellite and weather.
 networks can offer various high-speed connections up to 1
 Gbps (Giga-bit per second).
                                                                             Current Status
 Both fixed and mobile wireless internet service providers                   The FCC reports that 93 percent NC’s population has access
 (WISPs) continue to invest in upgrades to achieve greater                   to the internet at the FCC threshold speeds of 25 Mbps
 transmission speeds. Typically, fixed wireless—directing a                  download/3 Mbps upload.xx Only one percent of those
 radio signal from a vertical location directly to the home or               without access live in urban locations while 89 percent
 premises—can deliver speeds up to 1 Gbps depending on                       of those without access—nearly 640,000 people—live in
 the configuration and equipment. Many areas in the western                  sparsely populated areas.xxi

                    FIGURE 4. PERCENTAGE OF POPULATION WITHOUT BROADBAND ACCESS BY COUNTY

 Source: FCC 2016 Broadband Progress Report, data current as of December 31, 2014

 And 99 percent—8,910 people—in NC’s tribal lands lack broadband access at the FCC threshold.xxii
 NC’s broadband deployment rate ranks ninth in the nation, slightly above the US average. Among Southeastern states, it
 ranks first, tied with Florida (see Figure 4).

8 | North Carolina’s Broadband Plan
FIGURE 5. NORTH CAROLINA: A LEADER IN SOUTHEAST                  Within NC, 52 of the 100 counties have a household
           ON BROADBAND INFRASTRUCTURE                             broadband deployment rate equal to or above the US
                 AND CONNECTIVITY                                  average of 90 percent.xxiii

                                                                   Most people access the internet over DSL or cable.
                                                                   The proliferation of DSL was aided by federal or state
                                                                   telecommunications laws and regulations, and cable by
                                                                   local cable television franchise agreements. While the
                                                                   coverage is pervasive this infrastructure was not originally
                                                                   intended for current internet usage and applications. New
                                                                   and increased data demands have exposed problems
                                                                   with latency, reliability, and bandwidth. New technologies,
                                                                   such as DOCSIS 3.1, promise to increase DSL bandwidth.
                                                                   Without these technologies or network upgrades using
                                                                   fiber-optic cable within the next three to five years, many
                                                                   regions of the state will not be able to support the needs
                                                                   of businesses and individuals.

                                                                   While FTTP deployment has nearly tripled since 2013,
                                                                   according to the North Carolina Department of Commerce’s
                                                                   (NCDOC) 2013 Innovation Index, to 10 percent from 3.9
                                                                   percent, NC’s rank, 37th, remains lower than all peer states.
                                                                   Updated and current information suggests that deployment
                                                                   rates for FTTP are well above 10 percent, but significantly
 93% Broadband deployment is among the highest
 in the region.
                                                                   less than the US average—24.96 percent.xxiv
 Source: FCC 2016 Broadband Progress Report

                                  FIGURE 6. FIBER TO THE HOME PROGRESSION MAP, 2014-2015

 Source: FCC 2016 Broadband Progress Report

 When examining speeds and capacity available through these “last-mile” deployments (connections to the end user), as
 well as potential solutions to serve the unserved areas in the state, it is critical to note that NC has significant “middle-mile”
 assets. These provide the backbone for last-mile networks and create the ability for higher capacity and speeds around the
 state. While standard metrics for middle-mile are difficult to obtain, provider reports, infrastructure assessments, and other
 tools show the state has significant middle-mile assets.

 In addition, NC possesses the highest recorded inventory of open access middle-mile dark fiber assets of any state.
 Built and operated by the nonprofit, MCNC, the dark fiber strands are in a 2,600-mile contiguous build that touches 82
 of the state’s 100 counties (see Appendix E for visual). Forty-eight to 96 strands of fiber are available to broadband
 service providers to serve consumers and businesses in all areas of the state and for enterprises across all vertical
 markets (financial services, technology, healthcare, biotech, transportation, logistics, etc.) to build their own enterprise
 networks. Dark fiber shares the conduit with a lit fiber optic backbone that serves the broadband needs of all K–20
 public education institutions, most K–20 private education institutions and select research institutes, nonprofit healthcare
 providers, public safety and other anchor institutions.

9 | North Carolina’s Broadband Plan
The significance of these assets must be considered when         Gaps in Coverage
 looking at opportunities for expanding deployment. Other
                                                                  As previously mentioned, the most recent data provided by
 similar entities like ERC in the western part of the state
                                                                  ISPs show approximately seven percent of North Carolinians
 provide fiber optic middle-mile infrastructure for non-profit,
                                                                  do not have access at bandwidth speeds the FCC determines
 educational, and commercial entities.
                                                                  is adequate.xxv This number is likely much higher.

                  FIGURE 7. BIO’S BROADBAND AVAILABILITY INDEX AT 25 MBPS DOWNLOAD SPEEDS

 The lighter shades of blue seen in Figure 7 show where significant gaps exist in the state. Not surprisingly, these areas
 represent some of the state’s most economically distressed regions. Counties struggling with economic development,
 high unemployment and aging populations correlate strongly with those with insufficient broadband infrastructure.

 The issue is not strictly a rural one. It also persists where the population density or income levels are low.xxvi Even in urban
 areas, or sparsely populated areas within proximity to population hubs, gaps in access exist.

 In fact, there are many sparsely populated counties and areas in the state that boast next-generation, high-speed
 internet access. Figure 8xxvii shows where residents in small towns and cities have access to fast internet service at
 affordable or competitive prices.

                         FIGURE 8. BROADBAND AVAILABILITY AT 25 MBPS DOWNLOAD SPEEDS

10 | North Carolina’s Broadband Plan
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